Insurance industry employment stabilizes
58% of insurance companies plan to increase staff over the next 12 months, in part due to the expected increase in new business and markets, according to a US bi-annual survey of business insights conducted by Jacobson Group and Ward Group. A year ago, 64.1 percent of operators said they planned to add employees. Gregory P. Jakobson, Jacobson’s co-CEO, said: “We note that recruitment and employment prospects will continue as industry continues to stabilize.” “The expected increases in sales volume and the expansion of new markets are still pushing applications for employment.” Since April 2011, insurance companies have added 105,500 new jobs, an increase of 7.4 percent, according to the report. The report said finding qualified employees remains a challenge for the industry. Of the 12 categories of jobs, each has difficulty evaluating. Technology, actuarial, analytical and operational functions are categorized as the most difficult to cover. The report identifies several reasons for the recruitment challenge, including “rising demand for employment, an increasing gap in middle-level talent, imminent retirement, almost non-industry unemployment and poor talent.”
Technology roles, claims and analysis are expected to grow further over the next 12 months. Sales / marketing is the biggest need for life / health companies, while the technology for property / accident companies. Companies that say they will reduce staff in the next 12 months say automation is a major reason. While only 58 per cent of operators expect contracting, 79 per cent expect an increase in revenue growth, two points lower than the July 2017 survey. Large companies are the most optimistic about revenue growth, with 86 per cent growth expected, compared to 80 percent for medium-sized companies and 72 percent for small businesses. Life insurance companies / health more optimistic than their counterparts of property / victims about business growth. 94 percent of L / H operators said they were optimistic about revenue growth, up 13 points from the latest bi-annual report in July 2017, while optimism among P / C companies fell three points to 77 percent. The study includes income projections and employment of all industry sectors. Jacobson Group is an executive research, recruitment and temporary employees company that serves the insurance industry. Ward Group, a branch of En, produces measurement studies and best practices for insurance companies.